Central Bankers Affirm Gold as Strategic Reserve Asset

Central bankers meeting at the London Bullion Market Association annual conference in Sorrento, Italy, affirmed that gold remains a strategic reserve asset despite a surge in bond yields. Sergio Nicoletti Altimari, deputy governor of the Bank of Italy, described gold as the primary safe haven asset, noting that geopolitical risk and economic fragmentation have weakened the traditional inverse relationship between gold and real bond yields.

Bundesbank President Joachim Nagel argued that diversification into gold remains necessary because high government debt levels create credit risks, even as rising yields make bonds more attractive. The discussions highlighted a broader shift in how central banks view risk management in an unstable global economy.

Parallel shifts are occurring in the private sector. Shanghai Gold Exchange vice president Zeng Hui reported that investment demand and bar-and-coin purchases in China surpassed jewelry consumption for the first time in 2025, signaling a transition toward gold as a financial instrument rather than a luxury good.